Simple and Compound Interest STAAR Problems

Jot down the formulas shown in the image. You will need them for all questions. You may use a calculator on this assignment (you're welcome).

• Okay.

• Got it.

Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkins earned 4.25% annual simple interest on the money in the account. What was the balance in dollars and cents in Mr. Jenkin's account at the end of 4 years?

• $212.50

• $1,462.50

• $2,125

• $3,375

Gabriel deposits $2,500 into each of two savings accounts. Account I earns 4% annual simple interest. Account II earns 4% interest compounded annually. Gabriel does not make any additional deposits or withdrawals. What is the sum of the balances of Account I and Account II at the end of 3 years?

• $5,600.00

• $5,612.16

• $5,624.32

• $5,200.00

An employee put $5,000.00 in a retirement account that offers 9% interest compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closest to the interest the employee will have earned at the end of the 5 years?

• $229.09

• $450.00

• $2,250.00

• $2,693.12

An investor puts $2,500 into a life insurance policy that pays 8.25% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 10 years?

• $21,250.00

• $2,125.00

• $212.50

• $21.25

Mr. Wilkins deposited $2,500 in a new account at his bank. The bank pays 6.5% interest compounded annually on this account. Mr. Wilkins makes no additional deposits or withdrawals. Which amount is closest to the balance of the account at the end of 2 years?

• $2,835.56

• $2,513.00

• $2,662.50

• $2,825.00

Mr. Flores opened an account with a deposit of $5,000. the account earned annual simple interest. He did not make any additional deposits or withdrawals. At the end of 4 years, the balance of the account was $6,500. What is the annual interest rate on this account?

• 5.8%

• 7.5%

• 3.3%

• 1.9%

Tamara invested $15,000 in an account that pays 4% annual simple interest. Tamara will not make any additional deposits or withdrawals. How much interest will Tamara earn on her investment at the end of 3 years?

• $1,800

• $600

• $450

• $1,873

Nicolas has $650 to deposit into two different savings account. Nicolas will deposit $400 into Account I, which earns 3.5 % annual simple interest. He will deposit $250 into Account II, which earns 3 1/4% interest compounded annually. Nicolas will not make any additional deposits or withdrawals. Which amount is the closest to the total balance of these two accounts at the end of 2 years?

• $672.13

• $695.00

• $694.25

• $694.51

Olivia will deposit $1,530 in an account that earns 6% simple interest every year. Her sister Melinda will deposit $1,500 in an account that earns 8% interest compounded annually. The deposits will be made on the same day, and no additional money will be deposited or withdrawn from the accounts. Which statement is true about the balances of Olivia's account and Melinda's account at the end of 3 years is true?

• Olivia's account will have about $5.40 more than Melinda's account.

• Olivia's account will have about $84.17 more than Melinda's account.

• Melinda's account will have about $5.40 more than Olivia's account.

• Melinda's account will have about $84.17 more than Olivia's account.